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what can we do for you? >> and now, "bbc world news." >> the eurozone's big three -- germany, france, italy -- meet in another bid to find an answer to the crisis. new man on the block. italy's mario monti could be caught in the middle as the germans and french argue about the role of the central bank. welcome to "gmt." i'm george alagiah with a world of news and opinion. also on the program -- truce after five days of clashes in egypt. the ruling military council apologizes. thailand battles bloods and the government slashes but its growth forecast. a special report on how business is coping.

midday in london, early morning in washington and 1:00 in the afternoon in strasbourg, the venue of the latest of a long line of meetings aimed at finding an answer to the eurozone crisis. this is different. the first-time mario monti is attending as italy's new prime minister. and there are reports about sharp disagreements between france and germany over expanding the role of the european central bank and that mario monti could be caught in the crossfire. our european correspondent, chris morris. said, don'tlways underestimate the political will to protect the euro, come what may. it is being tested more than ever before. when welcome piece of news for france and germany, they and the markets like the new man at the top. >> the eurozone's big two are meeting again with plenty of urgent issues to resolve.

but this time they are joined by the new italian prime minister mario monti. the message they want to send to the markets? eurozone's third largest economy is too big to fail, too big to bail, but it is back in safe hands. can this respected academic economist also play a role in mediating between france and germany? efforts to find a way out of the crisis seems stuck in the mud. france still wants germany to change its mind and allow the european central bank to guarantee the debts of any country which runs into trouble. the fundamentals are solid, the problem is cthfidence, said the french foreign minister. i think the ecb should play an essential role to restore confidence, and i think it will. but there is -- little sign of germany or the ecb itself changing position. the bank is not there to print money. but how much of a jolt did

germany feel yesterday when its debt agency had to retain nearly 40% of an auction of german bonds because of lack of demand. some analysts believe pressure on berlin could be building. and another idea it has rejected so far -- eurobonds issued jointly by all eurozone countries will certainly be discussed by the three leaders in strasbourg. >> i think in today's meeting we move closer rather than distancing from the. we are hearing from both sides of the german government is not ruling out eurobonds and so we are getting closer. >> germany, of course, has its own ideas, including far reaching treaty changes to make the rules which govern the eurozone much tougher. that will have to be part of any grand bargain which emerges. and it really does feel now like time is running out. president sarkozy has said that he and mrs. merkel will issue

new proposals soon. the problem is, all the longer term talk about three changes is doing nothing to calm immediate crisis that shows no signs of slowing down. >> your turfing about the german auction -- powerhouse germany does not seem to be safe. >> the german bond auction yesterday i think can be over interpreted. some of the talk yesterday suggested apocalypse now has arrived seem to be overblown. for example, the interest rates being offered and the bonds were so low that in some ways there was not much of a surprise there were not many takers. but as we have been saying for a while, this is not just a debt crisis but also a crisis of confidence. this has had confidence again. it has an effect in itself. the other thing we have been saying for a while is one way or

another, germany will have to pay a lot to get out of this crisis. and they will probably have to pay more if they allowed eurozone to fall apart than it would do if they take tough decisions to hold it together. the real question facing germany now -- what is the least worst option. >> thank you very much. thank you. let's take a look at some of the other stories making headlines and run the world. egypt's ruling military council has apologized for the deaths of protesters as unrest in cairo and other cities enters its sixth day. thousands of protesters are still intercarrier square -- tahrir square in cairo. the military council consists parliamentary elections will go ahead as planned on monday. >> the supreme council of the armed forces will assist the interior ministry in holding

these elections and guaranteeing their safety. we had a meeting with the defense ministry with representatives of the inappropriate -- and we agreed for a security plan for the citizens, the voters, and political parties taking part in these elections. >> let's talk to our correspondent who is in cairo. i think that was mistaken -- and i said there were clashes. there is supposed to be some kind of trees. is a holding? >> the situation is relatively calm here. the crowd had swelled to several thousand. i do not know if you can see, but over to my right is where the interior ministry is and around their of their are protesters keeping back other protesters from what has been the scene of other confrontations with police on the approach to the interior ministry. we have heard 38 people have

been killed, the latest figure i have seen in these clashes. but now, although people are still coming up with tear gas canisters, evidence of teargas being fired in the last few days. a lot of people whatever with bandages on what i from eye injuries. but it is relatively calm. the makeshift clinics you see -- the indolence and a very busy at the moment. >> over the last few days it have -- and had seemed the elections scheduled for next week, they have gone out of the window. you think it is possible that they will be held and held on time and be free and fair, if you like? >> it is something people here in the square cannot envisions -- and bridges -- envisage. people talking about down with a marshall, the head of the forces.

but there are many people who do 1 things to go back to normal as quickly as possible. they see the start of the parliamentary election process on monday as being extremely important. there are political forces who want that, too. the muslim brotherhood, the most powerful political force in egypt. but one thing that tarnished the idea of elections and it will surely bring out crowds after friday prayers is just the brutality they have seen in recent days. there is now such a breakdown of trust with the police and even the military who send military police to support them to break up of the protest and to protect the interior ministry. that is what has shocked the egyptians, i think. that is what makes them very concerned about the security situation and the possibility of further violence. >> thank you very much. at least five people have been killed in the yemeni capital

sana'a when a government security forces is opened fire on a demonstration. anti-government activists were protesting against s againstaleh and beat -- against president saleh and in the city that was granted him. and portugal, a general strike being held in protest of austerity measures being introduced. public transport, schools, and hospitals are among the areas expected to be affected during the 24-hour stoppage. japanese researchers developed a substance that makes cancer cells low -- glow in minutes. they hope to be the to identify tumors that are the call to detect. the research team believes that if the agent is sprayed during surgery, more cancer becomes visible. the disaster forced hundreds of factories to close, creating havoc in the manufacturing sector and that the disrupting global supply chains.

of the water is receding but maybe sometime before thailand's businesses can recover. rachel harvey reports from bangkok. >> the big clean up begins. piles of grant said robinson left behind as the water receded. lairs of mold and mud. this street food stall was ruined by the flood, so he is building another one from scratch. i am using my savings to do this, he says, but it is time to move on. it is like i am starting a new life from zero. the floods have affected businesses small and large. a month ago there was still hope the industrial estate might be saved. this is it today. concrete islands in a glistening, filthy lake.

hundreds of factories abandoned to the water. hundreds of thousands of workers now without jobs. a lot of these factories that have had to close make components that are then exported from thailand to other factories from the world to be assembled into cars, electronics, whatever it may be. what is happening here is being felt right around the globe. this is one of those counting the costs. the company sports specialist components used in everything from mobile phones to computers. the water here rose 2.5 meters in a matter of hours. now the salvage operation is underway. machinery, jobs, supply chain and reputation is at stake. >> we can be in production in three or four months. but my customers coming back, a lot will depend not on me but on

what the government will do and what kind of confidence there will be in thailand that should this happen again we can defend ourselves. >> it will take months of hard work and billions of dollars of hard cash before thailand recovers from this. more investment still will be needed to prevent future disasters. if you -- true cost of thailand's worst floods in half a century is still being counted. bbc news, bangkok. >> still to come -- a lovely landscape, but where is the snow? austrian ski resorts are bracing for the slowest start in the ski season in decades. at least five people have been injured in an explosion in the canary islands. one at which he described in could have on condition. it happened in a hotel in the southwest of the island. they believe and gas leak is to

blame and an investigation is already under way. >> it is an idyllic spot and popular with tourists. but on wednesday, the canary islands holiday turned into a nightmare. confused guests poured out of the hotel when the smell of gas and smoke enveloped the the building. wase didn't know what it and we went to the breakfast hall and sat down and the smoke was coming up over the hotel and everybody was a bit excited. but we started eating and suddenly we were told to leave the hotel. >> parties believe a leak from a gas truck caused the blast. >> there was a leak and that led to an explosion that mainly affected the spot. four workers were severely injured with first and second-

degree burns. a norwegian gas was also badly injured. >> at least 17 people were treated for burn injuries at the local hospital. two reported to have burns over 90% of their body. nearly 1000 guests have been temporarily evacuated from their hotel. but staff hopes they will be able to return soon and enjoy the rest of their holiday. >> in western australia, a bush fire has destroyed or damaged more than 20 homes. the blaze started as a controlled burn south of perth but spread as winds picked up. it ripped through 1800 hectares of land. this is "gmt" from bbc will list. i'm george alagiah. italy's mou -- new prime

minister joins talks in the european debt crisis amid sharp differences between france and germany. each of the's military council says parliamentary elections will go ahead as planned on monday -- egypt's military council. they apologized for the deaths of protesters. here is the business news. guess what? eurozone? >> in particular, we are talking about the money market, the international bond market, and they all were right. let me explain. as you have been hearing, amid a worrying trend in the money markets, the leaders of germany, france, and italy are meeting in strasbourg. france wants the european central bank to help out nations and get this -- difficulty by guaranteeing their debt. but the stumbling block, german chancellor angela merkel is against it. she argues nations in trouble should reform and not be given an easy way out.

but of course, these talks have been given more urgency by events in the money market. germany struggled to sell government debt and borrowing costs rose. bill blaine is a senior director at a financial trading company and he explained the significance of events on the financial markets. >> yesterday we got a clear demonstration that it does not take a euro events like a greek the ball to kick off contagions. you know what? the virus is already spreading. a normal market, we would not particularly mind if the german market had not -- often than not on particularly well. it might have told us interest rates were so low that it might not be worth buying bunds and maybe you want to have risks somewhere else. but yesterday clearly demonstrated the global marketplace is walking away from the bureau. what is most interesting is the amount of volume and selling seen in places like asia, places like the u.s., where investors

are bailing out of europe completely. a couple of months ago we were all talking about china may be coming in and buying euro government bonds. we are not hearing anything like that anymore. >> certainly not. correct me if i am wrong, but really this crisis is running out of road because most of the experts are pretty adamant in the last few days saying there are only two options -- either the euro breaks up or the ecb steps in and steps in in a big way. >> i am not a euro skeptics. i am very favorable toward the euro working. but i am afraid we are getting to the situation where even if the ecb were to step in -- which i think is very unlikely to german resistance -- but even if the ecb stepped in with a limited buying, but -- i think the stage we got to now where the global marketplace is shying around from the euro because they are frankly fed up with the

dithering and uncertainty, i cannot really sure that would save the situation. it might ameliorate it slightly in the medium term but in the long term it would not create the growth problems, competitive problems, and that is what international call investors will look at. the fact none of them showed up winds germany through the auction yesterday tells us they had enough of europe. long-term, how does europe restore credibility? that is an issue. it just leaves the edge -- question of breakup. having that is what a lot of the market is planning. they are going through a scenario testing, where they should be invested. we have the u.s. fed telling the u.s. banks they are going to stress tests their european exposures. entering a new part of this crisis. >> on that gloomy note, let us talking about retail. profits have slumped by more than one-third, certainly one of

britain's biggest retailers like arcadia added to the bad news coming from the u.k. high street with 50% fall in annual profit. the company said u.k. weather was partly to brett -- blamed bit more -- blame. of the weather leading to slower sales. we asked if this is the worst trading environment he has ever seen. >> this is our first blip in nine years so the obvious answer is yes. but i think it is a difference in -- it is different, if you look at the u.k., this is -- although we had the financial stall. 9 and 10, we were ok. it was really just in this last year where i just think everything has tightened up across the globe. we have seen the marketplace becoming tougher. >> to touch on some of the other business is making headlines.

as you have been hearing, public services have been shut down in portugal. trade unions will be general strike against austerity measures. now hundreds of flights are being cancelled. a train and bus service also seriously disrupted. portugal facing a plan of that reduction in return for the bailout rock -- package from europe and the imf. the former chief executive of olympus is back in tokyo, being questioned by japanese investigators trying to find out who was involved in certainly one of japan's biggest scandals. this is his first return since he was removed as ceo. shares of hcc tumbled after it slashed its forecast. it now says revenues will not grow at all. it previously forecast a 30% growth. the world's number four smartphone maker facing a slow down as competition intensifies

and as the global economy continues to weaken. a quick look at the markets. this is what we saw in asia. still reeling. a bit of bargain hunting certainly in europe, after the dismal falls. of the previous five sessions, lost about 7% off the market value. we are seeing a bit of bargain hunting. don't be fooled, though. the eurozone is still very much on their mind. >> thank you very much. leaders of the two main palestinian factions hamas and the five top -- fatah to deal with issues blocking the implementation of the unity deal. in may they signed a surprise agreement to end the bitter rivalry. during may from a mollah -- joining me from ramallah, john. is it going to be any different

this time? >> i think palestinians will be pretty skeptical. they will not be holding their breath. you are right, this is the first time in six months that president mahmoud abbas from fatah has sat down. we understand there will be a press conference in the next hour. but when we had these talks six months ago they said they would set about forming an interim government made up of the independent figures that will work toward elections next year. pretty quickly they were squabbling over who would be in the interim government and things broke down. i just came passed a pro-unity rally in rolla with about a dozen people, which i think reflects the fact that people and not holding their breath. >> what will be the test of the meeting? if some of the big thing did not happen, what else can they do to suggest there is at least some

probe -- -- progress? >> i think they will say they are going to have more meetings in the coming weeks. what palestinians, i think, would like to hear is a date for elections and i think they might say again that they aim to do that next year. i think one of interesting things is why president mahmoud abbas from the fatah party doing this now, why talking to hamas and looking for a unit to deal. i think partly because he does not really see any point at the moment talking with israel. his relations with the united states is pretty bad as well. both the u.s. and israel very unhappy with the idea of hamas and doing some sort of pact with mahmoud abbas. as rob's position is i did you talk to us or hamas, not both. i think mahmoud abbas decided to talk to hamas for the moment because from his point of view, othe talks that broke down overa

year ago are not going anywhere. >> it is -- as if the economic crisis when a bad enough, many ski resorts in the alps had to cancel seasoning openings because of the lack of snow. some have experienced the driest november since the 1920's. stephanie delaware has this report. >> the ski runs are green instead of white. warm and sunny conditions in the mountains are beginning to worry the austrian ski industry. many regions are having to postpone their season openings. in parts of tyrol, snow canada operating around the clock. this ski resort has spent hundreds of thousands of euros to make artificial snow. >> we have about 1000 snow cannons. we cannot run them all at the same time get a 300 to 500 are

operational but we tried to do our best. >> while there will be enough snow to open this weekend, in other parts of austria it is too warm to run the snow cannons. in some areas, the lack of snow and rain has increased the risk of forest fires. but while some austrians are praying for snow, others are simply enjoying the weather -- windsor sun. stephanie bell, bbc news. >> reminder of our top story. leaders of the three biggest eurozone economies are holding emergency debt talks. french president nicolas sarkozy is urging his german counterpart angela merkel to abandon her refusal to allow the european central bank to become a lender of last resort. today's mini summit takes place in the shadow of a failed german bond auction that takes the debt

crisis to the core of the eurozone. stay with the bbc world news. there is more to come. >> make sense of international news at bbc.com/news. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank.

>> union bank has put its global strength to work for a wide range of financial companies. what can we do for you? >> bbc world news was presented by kcet los angeles. by kcet los angeles.